Decentralized derivatives exchange dYdX is expanding. After raising $10 million in Series B funding last month, the team is gearing up for its coming V3 launch.

Founder Antonio Juliano sat down with The Scoop this week to talk about where the decentralized finance (DeFi) space is going in the coming year. They could be the answer to the traditional financial system's transparency and security problems. But first, they have to scale.

Juliano told The Scoop how dYdX is handling scalability, including mitigating high gas fees. They're using ZK-Rollups, or zero knowledge proofs. These proofs take information and create a "constant sized data object" which means no matter how much data is input, the information remains the same size. The idea is that thousands of trades can be compressed into a small size to run on Ethereum, circumventing the high fees.

They're planning on launching their scaling solution in partnership with StarkWare in the next two weeks, according to Juliano. Juliano broke down dYdX's path to ZK-Rollups in this week's episode of The Scoop, along with:

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